ERF Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. As for ERF, the DDM model, as implemented by StockNews, implies a negative return of 20.4% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for ENERPLUS Corp are:

• Beta is a measure of how volatile a stock is relative to the S&P 500; for ERF, its beta is lower than 4.09% of stocks in the small-sized revenue class.
• With a market cap of roughly $474 million, ERF is in the mid-sized market cap class; here, it has a lower equity discount rate than 5.25% of stocks.
• Based on dividend growth rate, ERF boasts a higher growth rate in terms of its annual cash distributed to its owners than merely 0.95% of the dividend issuers in our set.

ERF Dividends vs. Peers